In preparing a bank reconciliation, the amount of outstanding checks is added to the balance per bank statement.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) Credit card sales benefit companies because ________.
A) the risk of uncollectible accounts is transferred to credit card companies
B) fewer customers will be able to buy products or services
C) the credit card company is not responsible for evaluating customers' credit-worthiness
D) they will receive less than the full amount of the sale from the credit card company
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Q. 3) Personnel development control plans consist of each of the following except:
a. checking employment references
b. providing sufficient and timely training
c. supporting employee educational interests and pursuits
d. performing scheduled evaluations
(
Q. 4) When company's debt-to-equity ratio is greater than 100 than its current ratio must be greater than 1.0 to 1.
Indicate whether the statement is true or false
(
Q. 5) The adjustment to journalize an additional premium due at the end of the year for workers' compensation insurance (WCI) is
a. debit WCI Expense and credit Cash.
b. debit WCI Expense and credit Insurance Refund.
c. debit WCI Expense and credit WCI Payable.
d. debit Insurance Payable and credit WCI Payable.
(
Q. 6) Avatar, Inc began operations on July 1, 2011. On August 1, it received 24,000 in advance for services to be performed evenly over the next 12 months.
How much of this revenue should the company report on its income statement for the year ended December 31, 2012?
A) 0
B) 2,000
C) 14,000
D) 10,000
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